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Monday, April 11, 2011

Jim Sinclair:Stay Focused

Dear CIGAs,Thinking back to the following post from April 5th:
Expect the Round Number Effect at $1500 for gold, but less severe than the battle at $1400. Angel $1650 is quickly coming into focus.
If we have learned one thing, it is not to get short term focused on this market. Stay focused on what is important and not the noise.
Think for a moment if Armstrong and Alf are right on gold. That would mean the following prices are coming:
$1650
$3000
$5000
$12,500

Jim Sinclair’s Commentary
See things in perspective. The close/open government game was a political show.
Look at what it all really means in the big picture. 33 billion is nothing more than crumbs.More Here..

5 comments:

Americans under the dollar hegemony system, were living in a fictionaly valued in paper dollars property and share market bubble ,their wealth and savings measured in Fiat $ paper.

The middle class was even able to supplement their incomes by pawning their houses using them as an ATM to get credit supply against the expected rises in value of their houses.

The rest of the world was prepared to exchange real commodity wealth for paper dollars and re-invest their dollar profits in US Treasury and other bonds thereby driving up the US share and property bubbles.

America had changed from being a productive industrial country making the bulk of its profits from manufacturing and from export profit incomes into a great Ponzi economy.

Unable to make a real profit from manufacturing in high waged America capital exported the industry technology and the jobs it owned to the cheaper labour third world where a profit could be got by selling, say Chinese commodities in America with American consumers financed by a credit supply .

This was only possible as long as other countries had confidence they were investing in real assets valued in strong currency dollars and that the interest or dividend returns they got back on their investments represented real international exchange value.With confidence that the dollar paper would be able to retain its dollar hegemony status as the dominant world standard of value in trade and finance. And that America could continue to pay its interest and dividends in real strong dollar value.

Even though a now fast de-industialiing economy America ceased being a real profit creation source from manufacturing exchanging use values in trade .The dollar prestige and military might ensured cheap oil supply and commodity wealth transfers from the third world puppet elites of empire, as long as they too got a cut from the cheap labor profits and could invest their bolt hole money in US assets for their future security . A mansion or two in America dual citizenship etc.

This dollar hegemony system functioned well enough for a few decades and Americans knowing how their bread was being buttered became rabid supporters of American wars for empire and cheap oil . The USA called these terrorist wars against the Third world peoples,wars for ensuring ‘freedom’ and “free trade” and even wars for ‘womens liberation”!

Still ,the stock market and property values surged ever higher when measured in the fast devaluing dollars pumped into the economy and then used by fractional reserve banksters to expand the credit supply “out of fresh air”

This crazy economy with people living high spending lifestyles on credit could not last.

The corrupted US government helped out, by deficit spending to finance its services, its military industrial complex and its wars and by subsidizing business ,giving tax cuts for the wealthy and even tax concessions to the lower middle class ‘with unearned tax credits” as well as with handouts to the underemployed pauperized poor. All this money printing was of course inflationary destroy the “strong” dollar status of the dollar.

In the end in order to “grow” their profits on accumulated capital, the banking sector, supported by the government cheap interest mortgage finance, by government regulators and paid for “credit rating” agencies colluding , turned to pure mortgage fraud.

Even property titles were corrupted .

Trillions in dollars worth of Dud mortgages and sub prime etc ,were flogged off to the rest of the world.

Banks and investors throughout the world lost trillions as the scams fell apart.With the resulting crash of the credit markets in 2008 the banking and housing bubbles collapsed the government could only socialize the losses by turning to the printing press as selling Treasury and dud property bonds to the world is now difficult!

Everyone is talking about Ryan's budget proposal, which includes the destruction of Social Security, Medicare and Medicaid, as though he is the second coming. Meanwhile, he not only doesn't cut defense spending, he increases it by 30%.

Is that the new America? Nobody has a job but we all work for the military? I guess the military-industrial complex isn't rich enough now, nor are the Republicans tired of sending their kids to war.

8:50 At least a budget was proposed! As far as Medicare goes, you will be grandfathered in. They will not change your precious program. They are talking about people 54 and younger. STOP DRINKING THE KOOL-AID AND EDUCATE YOURSELF INSTEAD OF BLEATING THE PROPAGANDA. Most of us know we won't get any of those benefits away. We'll be broke long before that.

I say print and spend! That's how we all live so why not? When the bills come due, we'll all just walk away. No pain, no sacrifice, and no brains.